Cognizant Technology Solutions (NASDAQ:CTSH) Issues FY 2026 Earnings Guidance

Cognizant Technology Solutions (NASDAQ:CTSH) issued an update on its FY 2026 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 5.560-5.700 for the period, compared to the consensus estimate of 5.620. The company issued revenue guidance of $22.1 billion-$22.7 billion, compared to the consensus revenue estimate of $22.1 billion. Cognizant Technology Solutions also updated its Q1 2026 guidance to EPS.

Cognizant Technology Solutions Trading Up 3.1%

Shares of NASDAQ:CTSH traded up $2.30 on Wednesday, hitting $76.80. The company had a trading volume of 5,265,877 shares, compared to its average volume of 4,858,061. The firm’s 50-day simple moving average is $82.92 and its two-hundred day simple moving average is $74.98. The firm has a market capitalization of $37.07 billion, a price-to-earnings ratio of 17.87, a P/E/G ratio of 1.59 and a beta of 0.95. The company has a quick ratio of 2.36, a current ratio of 2.36 and a debt-to-equity ratio of 0.04. Cognizant Technology Solutions has a 1 year low of $65.15 and a 1 year high of $90.82.

Cognizant Technology Solutions (NASDAQ:CTSH) last posted its quarterly earnings data on Wednesday, February 4th. The information technology service provider reported $1.35 earnings per share for the quarter, beating the consensus estimate of $1.32 by $0.03. Cognizant Technology Solutions had a return on equity of 17.00% and a net margin of 10.20%.The business had revenue of $5.33 billion for the quarter, compared to analysts’ expectations of $5.31 billion. During the same period in the previous year, the firm posted $1.21 EPS. The business’s revenue was up 4.9% on a year-over-year basis. Cognizant Technology Solutions has set its FY 2026 guidance at 5.560-5.700 EPS. Equities analysts anticipate that Cognizant Technology Solutions will post 4.98 earnings per share for the current fiscal year.

Analysts Set New Price Targets

CTSH has been the subject of a number of analyst reports. Citigroup reaffirmed a “neutral” rating and set a $86.00 target price (up previously from $75.00) on shares of Cognizant Technology Solutions in a research note on Thursday, January 22nd. JPMorgan Chase & Co. lifted their price objective on Cognizant Technology Solutions from $89.00 to $92.00 and gave the company an “overweight” rating in a research note on Thursday, October 30th. Royal Bank Of Canada cut their price objective on shares of Cognizant Technology Solutions from $93.00 to $82.00 and set a “sector perform” rating on the stock in a research report on Thursday, October 30th. UBS Group reissued a “neutral” rating and set a $82.00 price target (up previously from $78.00) on shares of Cognizant Technology Solutions in a research report on Monday, December 8th. Finally, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Cognizant Technology Solutions in a research report on Monday, December 29th. Nine analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $90.28.

Insider Buying and Selling

In related news, CEO Ravi Kumar Singisetti sold 3,125 shares of the business’s stock in a transaction that occurred on Thursday, December 4th. The shares were sold at an average price of $80.01, for a total transaction of $250,031.25. Following the completion of the sale, the chief executive officer directly owned 75,454 shares in the company, valued at approximately $6,037,074.54. The trade was a 3.98% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CAO John Sunshin Kim sold 2,500 shares of the stock in a transaction that occurred on Thursday, December 4th. The stock was sold at an average price of $80.00, for a total transaction of $200,000.00. Following the completion of the transaction, the chief accounting officer owned 36,149 shares in the company, valued at $2,891,920. The trade was a 6.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 27,706 shares of company stock valued at $2,317,281. 0.32% of the stock is owned by insiders.

Key Stories Impacting Cognizant Technology Solutions

Here are the key news stories impacting Cognizant Technology Solutions this week:

• Positive Sentiment: Beat on Q4 revenue and EPS, showing continued top‑line momentum and margin expansion — the quarter exceeded consensus and revenue grew 4.9% year‑over‑year. Cognizant (CTSH) Beats Q4 Earnings and Revenue Estimates
• Positive Sentiment: FY‑2026 revenue guidance tops Street expectations (range $22.1B–$22.7B) and Q1 revenue guide (~$5.4B) is above consensus — supports the view of stronger demand for its services. Cognizant Reports Fourth Quarter and Full-Year 2025 Results
• Positive Sentiment: Management cited large AI‑driven “mega‑deals” (reported as ~$500M deals) and stronger bookings as growth drivers — a structural tailwind if deal conversion and execution continue. IT Services Giant Cognizant Issues Healthy Outlook As $500 Million ‘Mega-Deals’ Fuel AI Growth
• Neutral Sentiment: FY‑2026 EPS guidance of $5.560–5.700 is only marginally above consensus — upside is modest unless management hits the high end of the range. Cognizant forecasts annual revenue above estimates
• Neutral Sentiment: Short‑interest notes in filings appear to contain reporting anomalies (zero/NaN entries); no clear short‑pressure signal from the data provided.
• Negative Sentiment: Execution risk remains: guidance implies management must sustain deal wins, conversion and margin expansion to justify the move — any slowdown or margin miss could reverse the rally.

Institutional Investors Weigh In On Cognizant Technology Solutions

Several institutional investors and hedge funds have recently modified their holdings of CTSH. Invesco Ltd. grew its stake in Cognizant Technology Solutions by 8.6% during the third quarter. Invesco Ltd. now owns 12,534,198 shares of the information technology service provider’s stock valued at $840,669,000 after acquiring an additional 987,395 shares in the last quarter. Amundi boosted its holdings in shares of Cognizant Technology Solutions by 9.2% during the 3rd quarter. Amundi now owns 5,194,700 shares of the information technology service provider’s stock valued at $352,197,000 after purchasing an additional 439,356 shares during the last quarter. Hotchkis & Wiley Capital Management LLC grew its position in shares of Cognizant Technology Solutions by 144.3% during the third quarter. Hotchkis & Wiley Capital Management LLC now owns 2,631,890 shares of the information technology service provider’s stock valued at $176,521,000 after purchasing an additional 1,554,648 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in shares of Cognizant Technology Solutions by 11.7% in the third quarter. Arrowstreet Capital Limited Partnership now owns 2,139,937 shares of the information technology service provider’s stock worth $143,526,000 after purchasing an additional 224,239 shares during the last quarter. Finally, Voloridge Investment Management LLC increased its holdings in shares of Cognizant Technology Solutions by 801.4% in the third quarter. Voloridge Investment Management LLC now owns 2,104,276 shares of the information technology service provider’s stock worth $141,134,000 after purchasing an additional 1,870,834 shares during the last quarter. Institutional investors own 92.44% of the company’s stock.

About Cognizant Technology Solutions

Cognizant Technology Solutions (NASDAQ: CTSH) is a global professional services company that provides information technology, consulting and business process services to large enterprises. Its core offerings include digital engineering, application development and maintenance, cloud migration and managed services, data analytics and artificial intelligence, cybersecurity, and industry-specific solutions. Cognizant works with clients to design and implement technology-enabled transformations that address customer experience, operational efficiency and new product and service delivery.

Founded in the 1990s and headquartered in Teaneck, New Jersey, Cognizant has grown into a multinational organization with delivery centers and operations across the Americas, Europe, and Asia.